Shares of auto retailers CarMax Inc. and Carvana Co. took a dive Thursday, after Amazon said it would launch vehicle sales online next year. Amazon
AMZN,
-0.54%
said that starting in 2024, auto dealers will be able to sell vehicles on Amazon’s U.S. platform for the first time. The e-commerce giant said Hyundai Motor Co.’s
005380,
+1.26%
vehicles would be the first brand available to buy online.
“This new digital shopping experience will make it easy for customers to purchase a new car online, and then pick it up or have it delivered by their local dealership at a time that works best for them,” Amazon said in a statement. Once a vehicle is selected in their area, based on a range of preferences, customers will be able to check out online with their chosen payment and financing options. CarMax’s stock
KMX,
-6.24%
sank 7.4% in afternoon trading, after being down about 4.8% just before Amazon’s announcement. Carvana shares
CVNA,
-7.17%
sank 8.5%, after being down 4.0% pre-announcement. Among others that were hurt by Amazon’s news, shares of online auto-information platform TrueCar Inc.
TRUE,
-6.59%
slumped 6.6% after being down 5.5% pre-announcement, and CarGurus Inc. stock
CARG,
-3.10%
swung to a loss of 6.1% from a gain of 1.7% on the news. Meanw …
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